Why the salary history question may soon be illegal

Advocates believe this is a big reason why the U.S. has a stubbornly persistent gender wage gap.
Reuters/Regis Duvignau

It's a question that can throw you an instant curveball during a job interview or on an application: What's your salary history?

But if some state and federal lawmakers get their way, you won't have to encounter it again: There's growing momentum across the country to make it illegal for employers to ask about your previous pay.

The reason why this question is so contentious is because hiring managers typically use the number you give them to come up with the salary they'll offer you if you land the position. But because women tend to make less than men even for the same job within a company, some women's rights advocates say the salary question puts potential female employees at a disadvantage, reports The Washington Post.

After all, if women start out at lower salaries, the thinking goes, they'll be offered smaller wages at each rung of the job ladder. That means throughout their careers, they'll be taking in considerably less than their male peers.

Advocates believe it's a big reason why the U.S. has a stubbornly persistent gender wage gap: In 2015, women who worked full-time made about 80 cents to every dollar that a male full-time worker took home.

Massachusetts has taken the lead on the issue, becoming the first state to ban public and private employers from asking about a candidate's salary during the interview process. Instead, hiring managers have to state what the salary is upfront, though they can base that number on what they feel an individual candidate is worth to the company.

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Earlier this month, New York City's mayor issued an executive order prohibiting hiring managers at public city agencies from asking the salary question as well. A second bill banning private sector companies from requiring potential employees to give their salary history is also in the works.

Similar legislation has been proposed in New Jersey and Philadelphia. A bill was even introduced on the federal level in September. The Pay Equity for All Act of 2016, currently making its way through Congress, would fine companies up to $10,000 if they seek out a candidate's salary history.

While many job seekers will be relieved not to have to talk about pay and potentially get lowballed, some pro-business groups aren't thrilled about the bills, insisting that they overreach to correct the gender pay gap and prevent companies and employees from negotiating a salary on their own.

In the meantime, if you don't live in an area that bans the salary history question, what should you do when it shows up on a job application or is thrown out by a hiring manager during an interview? Here are a few guidelines to consider.

Be transparent

While you might be tempted to fib, this can backfire on you because your prospective employer can contact your current or former workplaces and ask about your salary history during the reference or background check phase.

Talk 'total compensation'

After your salary reveal, write or say that you're willing to negotiate when it comes to total compensation, which includes not just your wages but bonuses, vacation days, flextime and other benefits. You're signaling to HR that while you want the job, you also know your worth.

Put your salary in the best light

If you feel your pay was on the low end for your position and your industry, make sure the hiring manager knows this and why: Perhaps you decided to trade off on salary for the opportunity to work for a specific company, or you're up for a 15% raise next month at your annual review and expect to nail it.